Gea Group Aktiengesellschaft · XETR:G1A
Gea Group Aktiengesellschaft — GEA Group — Investor Day (June 2011)
30 slides from Gea Group Aktiengesellschaft's investor day presentation, Jun 29, 2011
Slide 1: The Importance of Food Industry for GEA
The Importance of Food Industry for GEA Niels Graugaard, Member of GEA Executive Board Capital Markets Day, June 29 – 30 2011, Bakel GEA Group
Slide 2: Disclaimer
Disclaimer Forward-looking statements are based on our current assumptions and forecasts. These statements naturally entail risks and uncertainties, which may cause the actual results of operations, financial position or performance to diverge significantly from the estimates given here. Factors tha
Slide 3: Agenda
Agenda Growth Drivers for the Food Industry Demographics Trends in Consumer Behavior Food Market Environment GEA’s Exposure to the Food Industry Food Equipment Market GEA’s Performance related to Food 3 GEA Capital Markets Day June 29-30, 2011, Niels Graugaard efficiency in food and energy processes
Slide 4: Growth Drivers – Food and Energy
Growth Drivers – Food and Energy Megatrend Significance for demand Demand relevant for GEA Continuously rising Volume growth and catch-up demand for food and potential especially in South and energy East Asia, Latin America and, in Steady growth in global future, Africa population Processed foods/re
Slide 5: Top Countries with the Largest Population Growth until 2020
Top 10 Countries … with the Largest Population Growth until 2020 GEA benefits mainly from population growth in more affluent countries, which demand more processed and convenience food. 10.000.000 Population 2010 in Thousand (log scale) India China 1.000.000 II I Indonesia Pakistan United States Siz
Slide 6: Food Habit Change driven by Urbanization
Food Habit Change driven by Urbanization In Billion +0.8 Billion +0.9 Billion +0.9 Billion World Population Urbanization Middle Class +1.0 % +2.1 % +4.9% 7,6 6,8 4,4 2,2 3,5 1,3 CAGR in % 2009 2020 2009 2020 2009 2020 Source: Division of the Department of Economic and Social Affairs of the United Na
Slide 7: Agenda
Agenda Growth Drivers for the Food Industry Demographics Trends in Consumer Behavior Food Market Environment GEA’s Exposure to the Food Industry Food Equipment Market GEA’s Performance related to Food 7 GEA Capital Markets Day June 29-30, 2011, Niels Graugaard efficiency in food and energy processes
Slide 8: Trends in Consumer Behavior regarding Food
Trends in Consumer Behavior regarding Food Changing eating habits lead to growing demand in 1. Functional food, 2. Processed and prepared food, especially meat, and 3. Convenience food. Source: UN, Rabobank. 8 GEA Capital Markets Day June 29-30, 2011, Niels Graugaard efficiency in food and energy pr
Slide 9: Consumer Trend 1: Functional Food
Consumer Trend 1: Functional Food Functional Food are food and drink products making a specific health claim. Our mission is to bring health through food to as many DANONE: people as possible. NESTLE: … the world's leading Nutrition, Health and Wellness company. PEPSICO: “The creation of the Global
Slide 10: Functional Food Major Claims
Functional Food Major Claims Digestive Health • Pro-biotic • Fiber enhanced Energy Drinks • Energy • Convenience Package Bones and Movement • Calcium added • Movement supportive 10 GEA Capital Markets Day June 29-30, 2011, Niels Graugaard efficiency in food and energy processes.
Slide 11: Functional Food Current Situation and Growth Potential
Functional Food Current Situation and Growth Potential Functional Food Categories Growth Rate 2006-2010 47% Others 39% Soy Products Dairy 31% Fish and 6% 29% 6% Eggs 7% 38% Meat, Fat Projected 8% and Oils Market Size 2014 $ 30 bn 12% Beverages Japan US Europe World 23% Projected Growth Rate 2011-201
Slide 12: Consumer Trend 2: Processed Protein Products
Consumer Trend 2: Processed Protein Products 2010 % processed meat* out of all meat production 70% Mature markets with high % processed Germany 60% US 50% 40% Western Europe (excl. Germany) Smaller base but fast 30% Eastern Europe growing – 20% p.a. in (excl. Russia) 2007-10 Russia Developed Asia St
Slide 13: Increasing Demand in Processed Meat & Poultry Leads to Growth in Food Equipment Sales
Increasing Demand in Processed Meat & Poultry Leads to Growth in Food Equipment Sales Sales of machinery and equipment (mUSD) Primary and secondary processing 1.202 +4.1% North America 1.532 827 +4.9% Latin America 1.101 2.269 +3.7% Europe 2.823 2009 2015 Middle East 536 +4.9% 714 CAGR* Asia Pacific
Slide 14: Increasing Demand in Processed Fish and Seafood Leads to Growth in Food Equipment Sales
Increasing Demand in Processed Fish and Seafood Leads to Growth in Food Equipment Sales Sales of machinery and equipment (mUSD) Primary and secondary processing 347 +3.1% North America 417 189 +3.5% Latin America 233 459 +2.7% Europe 538 2009 2015 Middle East 114 +3.5% 140 CAGR* Asia Pacific +6.2% 1
Slide 15: Consumer Trend 3: Convenience Food
Consumer Trend 3: Convenience Food Ready-to-Eat • Fresh • Meals • Snacks Ready-to-Heat Frozen Food Ready-to-Cook Source: Swiss Association for Nutrition . 15 GEA Capital Markets Day June 29-30, 2011, Niels Graugaard efficiency in food and energy processes.
Slide 16: Agenda
Agenda Growth Drivers for the Food Industry Demographics Trends in Consumer Behavior Food Market Environment GEA’s Exposure to the Food Industry Food Equipment Market GEA’s Performance related to Food 16 GEA Capital Markets Day June 29-30, 2011, Niels Graugaard efficiency in food and energy processe
Slide 17: Food Market Environment: Food Safety
Food Market Environment Food Safety Food Safety – move to zero tolerance • Current issues: • EHEC • Chinese food scandals • Stringent food safety legislation • Biggest business and reputational risk for food Industry Global Manufacturing Priorities for 2011 Promotion poster of HACCP (Hazard Analysis
Slide 18: China's Pledge on Food Safety
Food Market Environment China‘s Pledge on Food Safety Chinese Food Scandals • Melamine-tainted milk • Toxic bean-sprouts • ‘Cadmium’ rice • Use of the steroid clenbuterol in pork production • Milk with leather-hydrolyzed protein • “Avatar” meat contaminated by a phosphorescent bacteria Consumers‘ Ne
Slide 19: GEA Benefits from Chinese Dairy Market
Food Market Environment GEA Benefits from Chinese Dairy Market Opportunity Chinese 70 dairy market 22 [in bn $] Full scope 2009 2020 supplier with high hygienic Challenge and safety Consumers‘ concern about milk standards quality and safety Full solution Big players have to build up own supplier for
Slide 20: Stable Capex despite Food Price Volatility
Food Market Environment Stable Capex despite Food Price Volatility Strategies of Food Manufacturers facing Commodity Inflation • Aggresive cost management • Demand for energy efficient solutions [EUR Million] % 35.000 220 30.000 200 Food Price Index** Rolling Capex* 25.000 180 20.000 160 15.000 140
Slide 21: Agenda
Agenda Growth Drivers for the Food Industry Demographics Trends in Consumer Behavior Food Market Environment GEA’s Exposure to the Food Industry Food Equipment Market GEA’s Performance related to Food 21 GEA Capital Markets Day June 29-30, 2011, Niels Graugaard efficiency in food and energy processe
Slide 22: Food & Beverage – Long-term Growth
Food & Beverage – Long-term Growth Implication for Equipment GEA as Full Growth Drivers Suppliers (like GEA) Scope Supplier • Multi-national and large • Worldwide population and domestic food manufacturers GDP growth favoring high level, full scope suppliers of internationally • Urbanization leading
Slide 23: GEA's Acquisition of CFS
GEA’s Acquisition of CFS CFS is Filling a Gap for GEA Sector Application GEA profile CFS profile Profile GEA + CFS Milk Production Strong Strong Drinking Milk Strong Strong Yogurt, Sour Milk Drinks (…) Strong Strong Cheese Active Active Active Dairy Butter Strong Strong Ice Cream Active Active Milk
Slide 24: GEA's Food Equipment Applications
GEA’s Food Equipment Applications Full Scope Supplier Examples of technology heat GEA FT GEA Milk cool/freeze GEA ME Production separate GEA Valves GEA PE dry / dewater GEA Spray Dryers distill pump Foodstuff dose agglomerate GEA Spiral prepare Cookers GEA CT marinate GEA Plate Heat process Exchange
Slide 25: Agenda
Agenda Growth Drivers for the Food Industry Demographics Trends in Consumer Behavior Food Market Environment GEA’s Exposure to the Food Industry Food Equipment Market GEA’s Performance related to Food 25 GEA Capital Markets Day June 29-30, 2011, Niels Graugaard efficiency in food and energy processe
Slide 26: German Machinery Industry: Food Equipment less Volatile
German Machinery Industry Food Equipment less Volatile Index rolling average 2005=100. In real terms, seasonally adjusted, smoothed. Order intake of food and packaging equipments is less volatile than other branches in times of economic slowdown. Source: VDMA 26 GEA Capital Markets Day June 29-30, 2
Slide 27: GEA's Rolling Order Intake by Customer Industry
GEA’s Rolling Order Intake by Customer Industry [in EUR million] ∆ Strong and consistent growth driver is the order intake from June 2010 6.000 (LTM) to May the food industry 2011 (LTM) Rolling Last 12 Months Other Industries 5.000 Rolling Last 4 Quarters +70% +23% Marine -19% Pharma 4.000 +24% +13%
Slide 28: GEA's Rolling Order Intake from Food Industry
GEA’s Rolling Order Intake from Food Industry** Regional split since June 2010* [in EUR million] ∆ Order intake development from Asia-Pacific supporting the June 2010 overall order intake coming from the food industry (LTM) to May 2011 (LTM) 2.500 Rolling Last 12 Months Rolling Last 4 Quarters Asia-
Slide 29: GEA Benefits from the Food Industry
GEA Benefits from the Food Industry As a high level, full scope supplier of internationally uniform quality, GEA benefits from the food industry by acting according to the current trends • High hygienic standards for food safety • Optimal process to maintain the functionality of functional food • In
Slide 30: efficiency in food and energy processes.
30 GEA Capital Markets Day June 29-30, 2011, Niels Graugaard efficiency in food and energy processes.